1921-25: Walter Chrysler, a former General Motors executive, becomes chairman of Maxwell-Chalmers. A year later, the company is renamed Maxwell Motor. Maxwell becomes Chrysler in 1925.1928: Plymouth and DeSoto brands launched. Chrysler acquires Dodge Bros., a company that was five times the size of Chrysler.1929: Walter Chrysler finances, begins construction of Chrysler Building in New York, then the world's tallest building.1932: Chrysler introduces safety glass and power brakes.1951: Designs Hemi V-8.1956: Introduces a push-button automatic transmission.1958: Chrysler buys into French car firm Simca and begins selling them in U.S.1964: Plymouth Barracuda is introduced just two weeks ahead of rival Ford Mustang.1971: Chrysler buys equity in Japan's Mitsubishi Motors.1978: Chrysler sells its European operations to Peugeot-Citroen.1979: Lee Iacocca named chairman.1980: President Carter signs law giving Chrysler $1.5 billion in federal loan guarantees.1982: Rolls out Dodge Aries and Plymouth Reliant, the K-cars that are key to financial recovery.1983: Pays off the federal loan guarantees seven years early.1984: New Dodge Caravan and Plymouth Voyager create minivan market segment.1987: Acquires American Motors for $800 million, including Jeep.1988: Fiat and Chrysler sign an agreement under which Chrysler will sell Alfa Romeo vehicles in Canada and the U.S.1991: Chrysler sells its holdings in Mitsubishi Motors.The Alfa Romeo deal ends.1994: Chrysler reports record earnings of $3.7 billion from revenue of $52.2 billion.1997: U.S. market share peaks at 14.9%.1998: Daimler-Benz and Chrysler agree to merge, forming DaimlerChrysler.2001 :Plymouth brand killed.2007: DaimlerChrysler agrees to sell 80.1% of Chrysler to Cerberus Capital Management, for $7.4 billion.2008: Launches first hybrids, the Chrysler Aspen and Dodge Durango. Within a few months, announces production will end because it can no longer afford the Delaware plant.

2009 Jan. 2: Chrysler receives an initial $4 billion federal loan.Jan. 20: Italy's Fiat unveils a proposal to take a 35% stake in exchange for access to itstechnology and overseas markets.March 30: Obama administration rejects Chrysler's restructuring plan and gives Chrysler 30 days to complete an alliance with Fiat or risk being cut off from further government funding.April 13: Chrysler and Fiat discuss a new management and board for the U.S. automaker.April 24: Chrysler's lenders and Obama administration begin talks on cutting Chrysler debt.Sunday:Under government pressure, United Auto Workers and company reach deal on worker concessions, 55% company equity for cash owed retiree health fund.Tuesday: Daimler reaches deal to exit its 19.9% stake.Thursday: Chrysler and Fiat confirm a global strategic alliance as Chrysler files Chapter 11 after bondholder talks collapse.

Sources: Chrysler, Reuters

By Sharon Silke Carty, USA TODAY

DETROIT  Chrysler's move into bankruptcy court is a last-ditch attempt by the beleaguered company to get its house in order before partnering with Italian automaker Fiat.

It's a move that comes with a lot of risk. The company and President Obama promise the process will be quick and won't affect normal operations. But just a few hours after filing for Chapter 11, plants began shutting down as suppliers refused to deliver parts. The automaker has decided to shut down most production for 30 to 60 days.

The events were orchestrated by the U.S. government, which had given Chrysler until Thursday to renegotiate its union contracts, cut its debt load and find a company with which to partner for greater scale to survive in the marketplace.

The carmaker accomplished two of those goals: It hammered out a proposed partnership deal with Italian automaker Fiat and negotiated labor contract concessions that were approved by its Canadian and U.S. labor forces.

Even so, by late Wednesday, Chrysler and the government's auto task force had failed to get all of its bondholders to agree to forgive about two-thirds the $6.9 billion Chrysler owed them.

The car company survived a near-death experience with government help in the 1980s. It skimmed past bankruptcy by winning $1.5 billion in government loan guarantees, and rebounded in a few years — paying back the loans early — then produced vehicles that started two major car trends: minivans and SUVs.

The automaker said it will continue selling cars and paying dealers as usual while in bankruptcy court and hopes to create a new company to emerge in 30 to 60 days, an ambitious time frame for a bankruptcy of this size. Chrysler's production shutdown will help further cut its inventory on dealer lots, CEO Robert Nardelli said, but also will cut off income for already ailing parts suppliers.

Obama put a positive spin on the news, saying that although he would have preferred to keep Chrysler out of bankruptcy court, it will emerge a healthier company.

"This is not a sign of weakness, but rather one more step on a clearly charted path to Chrysler's revival," Obama said. "Because of the fact that the UAW and many of the banks, the biggest stakeholders in this whole process, have already aligned, have already agreed, this process will be quick. It will be efficient."

Obama scolded the holdouts who wouldn't join the four big banks holding two-thirds of the debt in taking the U.S. Treasury's offer of $2.25 billion for the $6.9 billion owed by Chrysler — and blamed them for pushing the automaker into bankruptcy.

Shortly after Obama's speech, Nardelli said he would step aside after Chrysler emerges from bankruptcy.

Once Chrysler exits bankruptcy court restructuring, it can close the deal with Fiat. The industrial conglomerate has promised to help Chrysler distribute cars outside North America, giving the automaker access to more markets. It will also build a new fuel-efficient engine in a U.S. factory, and will build a 40-miles-per-gallon car in the U.S.

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